Nasdaq winds up Indian operations

BANGALORE: Nasdaq, the premier electronic-traded stock exchange headquartered in New York, has closed down its India office in Bangalore, a decision that reflects the downcast sentiment in India���s information technology sector.

Nasdaq came to Bangalore in 2001 after Indian companies such as Infosys Technologies, Satyam Infoway and Rediff listed on the bourse with a mandate to work with Indian firms with the potential for an overseas public offering. But several emerging and mid-sized IT companies have suffered deeply due to the ongoing economic meltdown and the possibility of a Nasdaq listing has receded into the background.

According to people familiar with the development, the Bangalore office, for all practical purposes, has been shut down with even Ghanshyam Dass, who was appointed as director for the South Asia region in 2001, leaving organisation around three months ago to take up other assignments. Sources further said that Nasdaq did not even make any announcement of bringing a new head into Banglaore.

However, there was no response from Nasdaq regarding this development, despite repeated email enquiries. Sources said Nasdaq is now maintaining just a liaison office in Mumbai.

During the inaugural of the Bangalore office, the then Nasdaq vice-chairman Alfred R Berkeley had said: ���The decision to open an office in India was two-fold. First, to provide enhanced service to our existing companies ��� Infosys, Rediff and Satyam Infoway ��� and second, to assist other companies contemplating listing on Nasdaq.���

���The intention is to open a door for Indian companies to access global funds and pools of liquidity. We hope many Indian companies will utilise this opportunity by accessing capital through Nasdaq, he added.���

The closure of the Bangalore office also reveals the negative sentiment prevalent in the Indian IT industry, which is facing its worst-ever crisis, following the global economic downturn.

Nasdaq was holding talks with several Indian companies, including public sector entities, for a possible listing on the bourse. Their focus were largely on technology firms, which were either looking at primary listing on bourse or a secondary issue.

Given that Nasdaq hosts around 3,200 companies with a strong focus on tech firms, any listing on the bourse provides the visibility and valuation.

Till now, only three India headquartered companies are listed on Nasdaq, which happened between 1999 and 2000. Infosys Technologies was the first to list on Nasdaq in 1999, with an American Depository Share (ADS) and with a follow-on offer in 2004. It is also included in the Nasdaq 100 list.

Besides these companies, there are few other tech firms who are headquartered in the US, but with a large presence in India such as EXL, Kanbay, Cognizant, who are listed on the Nasdaq.